Deceased owner of life ins. policy

[Kavalon99]

What is the name of your state (only U.S. law)? Massachusetts
My mother was the owner and beneficiary of a flexible premium adjustable life insurance policy. The insured was her husband. The purpose was to pay off the mortgage when he passed away. As the fates would have it, my mother passed away first. Can the policy be kept in effect by her estate? We would like to keep the policy with my father as the insured. Do we have to cash in this policy?What is the name of your state (only U.S. law)?

 

[Betty]

Generally, if the bene/owner (your mother) dies before the insured (your father), the insured's (your father's) estate automatically becomes the beneficiary. The proceeds will be paid to his estate at his death. However, someone needs to continue paying the premiums when due in order to keep the policy in force. If you have a copy of the policy, the way this situation is handled is usually in the policy provisions or you can call & talk to the ins. co. There may be other options if you want them/ask form them (ie "cashing in" policy/turning in policy which it seems you don't want to do) - the ins. co. or an agt. of the co. can give you all this information.

I'm assuming there was probably no contingent bene/owner named in case your mother passed away before your father. If so, it would be in the policy.